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Sugar mills lease plans run into headwinds as worker protests widen
Chemelil Sugar workers and Kenya Union of Sugar Plantation and Allied Workers, Chemelil Branch protest the leasing of the company to Kibos Sugar on April 29, 2025.
Plans to lease out State-owned sugar millers to private investors have run into headwinds amid protests by workers opposed to the initiative.
State-owned Muhoroni Sugar Company employees on Wednesday downed their tools to protest the alleged takeover of the miller by privately owned West Valley Sugar Company Limited.
The protest came just a day after Chemelil Sugar Company employees took to the streets on Tuesday protesting what they termed a “secretive and irregular” lease of the miller to the privately owned Kibos Sugar and Allied Industries Limited.
The protests came as Kenya Union of Sugar Plantation and Allied Workers (Kuspaw) General Secretary Francis Wangara maintained that the new investors must honour collective bargaining agreements (CBAs) between the factories and unions.
“We welcome the government’s proposal to have a one-year period under which no employees will lose their jobs as the lessees assess the factories and determine their labour needs. No employee should earn less than what they are earning under the current CBA,” he said.
Mr Wangara while urging the Ministry of Agriculture to conduct the exercise above board to earn the trust of stakeholders, said they would resist any attempt to award contracts to firms perceived as hostile to workers, citing past disputes.
“For example, it is difficult to relate with the management of Kibos Sugar after they applied for revocation of recognition agreement against Kuspaw,” he said.
Workers’ interests
To safeguard workers’ interests, Mr Wangara said the union had insisted on having three representatives sit in the transition committee overseeing the handover.
“We have agreed that the new investors will maintain the current salaries of workers and that no worker will be sent home. This will be spelt out in the letter of the contract,” he said.
Meanwhile, the Ministry of Agriculture has summoned the managing directors and board chairpersons of the four mills earmarked for leasing to discuss the transition roadmap.
Sources familiar with the process told the Business Daily that the officials first met Principal Secretary Kiprono Ronoh at Kilimo House in Nairobi before proceeding to a closed-door retreat in Maanzoni, Machakos County.
During the meetings, the ministry was briefed on the status of the companies, including outstanding arrears owed to workers, farmers, and suppliers.
The management teams are expected to submit their final reports to Mr Ronoh on Friday for onward transmission to Agriculture Cabinet Secretary Mutahi Kagwe.
Insiders said Kibos Sugar and Allied Industries Limited is set to take over Chemelil Sugar Company while either Butali or Busia Sugar might be awarded Sony Sugar. West Valley, a relatively new player in the sector, is tipped to manage Muhoroni Sugar Company.
However, the decision on the new investor for Nzoia Sugar Company remains pending following stiff resistance from local leaders and the community.
Mr Kagwe said the process is being overseen by a committee led by Kenya Sugar Board Chief Executive Jude Chesire.
He reassured all stakeholders that the leasing would not be done without listening to their grievances.
“Next week I have a series of meetings with various stakeholders… The negotiations are still going on to ensure that when we lease out the factories, the interests of farmers and workers are protected,” said Mr Kagwe in a statement on Wednesday.
Separately, Kenya Association of Sugarcane and Allied Products Chairman Charles Atyang’ vowed to challenge the impending takeovers in court.
“We are not ready to experiment with our companies using entities that have barely operated for a year.
“The government should treat this matter with the seriousness it deserves and stop recycling the same problems that have crippled the sugar industry for decades,” said Mr Atyang’.
